TCRLA_Public/100901.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      L A T I N  A M E R I C A

              Wednesday, September 1, 2010, Vol. 11, No. 172

                            Headlines



A N T I G U A  &  B A R B U D A

STANFORD INT'L: Owner Didn't Lead Ponzi Scheme, Ex-Prosecutor Says


B E R M U D A

ESG RE: Court to Hear Wind-Up Petition on September 17
INDOLUX DERIVATIVES: Creditors' Proofs of Debt Due on September 10
INDOLUX DERIVATIVES: Members' Final Meeting Set for October 4
LSF3 INDONESIA: Creditors' Proofs of Debt Due on September 10
LSF3 INDONESIA: Members' Final Meeting Set for October 4

NIPPON III: Creditors' Proofs of Debt Due on September 10
NIPPON III: Members' Final Meeting Set for October 4
PROTOSTAR LTD: Seeks U.S. Plan Exclusivity Until November 29


B R A Z I L

PARANA BANCO: S&P Raises Counterparty Credit Ratings to 'BB-/B'


C A Y M A N  I S L A N D S

BALVENIE LIMITED: Members' Final Meeting Set for September 22
CLOVERDALE LIMITED: Shareholder to Hear Wind-Up Report on Sept. 8
COGO WOLF: Shareholders' Final Meeting Set for September 16
EMERSON REINSURANCE: Shareholder Receives Wind-Up Report
FIRST HOSPITAL: Shareholder Receives Wind-Up Report

FOUNDATION RE: Shareholders' Final Meeting Set for September 16
JAVELIN RE: Shareholder to Hear Wind-Up Report on September 16
MODULUS EUROPE: Shareholders' Final Meeting Set for September 7
MODULUS EUROPE: Shareholders' Final Meeting Set for September 7
MONT GELE: Shareholder Receives Wind-Up Report

PERITUS OFFSHORE: Shareholders' Final Meeting Set for September 16
RESIDENTIAL REINSURANCE: Member to Hear Wind-Up Report on Sept. 16
RESIDENTIAL REINSURANCE: Member to Hear Wind-Up Report on Sept. 16
SOUTH COAST: Members' Final Meeting Set for September 27
SUMITOMO FINANCE: Members' Final Meeting Set for September 27

ZURICH PREMIER: Members' Final Meeting Set for September 27


C H I L E

COMPANIA SUD: S&P Raises Ratings to 'B'; Gives Positive Outlook


C O S T A  R I C A

INSTITUTO NACIONAL: Fitch Affirms 'BB+' Insurer Strength Rating


D O M I N I C A N  R E P U B L I C

BANCO DE RESERVAS: Fitch Affirms 'B' Issuer Default Ratings
LISTIN DIARIO: Investors Acquire Firm


J A M A I C A

* JAMAICA: At Risk of US$100MM Annual Loss From Hurricanes


M E X I C O

METROFINANCIERA SA: Seeks Bankruptcy Protection in U.S.
VITRO SAB: Bond Rally Shows Creditors See Sweetened Offer
VITRO SAB: Concludes Sale of REIT Assets for US$63 Million


P U E R T O  R I C O

VASSALLO INDUSTRIES: Scales Back Under New Corporation




                         - - - - -


===============================
A N T I G U A  &  B A R B U D A
===============================


STANFORD INT'L: Owner Didn't Lead Ponzi Scheme, Ex-Prosecutor Says
------------------------------------------------------------------
Securities lawyer Christopher Bebel told United States District
Judge Nancy Atlas that financier Robert Allen Stanford did not
lead a multi-billion Ponzi scheme, Laurel Brubaker Calkins and
Andrew Harris at Bloomberg News report.  "I haven't seen any
evidence that links Mr. Stanford to any particular criminal act
and establishes a knowing intention" to break any laws, the report
quoted Mr. Bebel as saying.

Mr. Bebel, who previously prosecuted white-collar crimes at the US
Attorney's office in Minneapolis, presented his conclusions in the
fourth day of the Stanford vs. Lloyd's of London trial.

As reported in the Troubled Company Reporter-Latin America on
August 27, 2010, Bloomberg News said that Lloyd's of London
underwriters are attempting to convince Judge Atlas that Mr.
Stanford conspired to steal money so they can avoid paying
attorneys to defend him on criminal fraud charges, Ellen Rosen at
Bloomberg News reports.  According to a separate Bloomberg report,
Lloyd's of London witness forensic accountant Alan Westheimer
testified that the US$1.6 billion that Mr. Stanford allegedly
skimmed from investors was borrowed from Stanford International
Bank Limited as loans to startup entities and other businesses Mr.
Stanford controlled.  The report noted Mr. Westheimer said that
Mr. Lopez and comptroller Mark Kuhrt, who hired him after they
were indicted in June 2009, told him this year they thought the
borrowing should have been publicly disclosed.

According to the report, Mr. Bebel said that he found no
incriminating evidence against Mr. Stanford in reviewing materials
presented in the insurance case.  The report relates Mr. Bebel
said that the indictment against Mr. Stanford and his colleagues
"mischaracterises" his enterprises as a Ponzi scheme, which is
defined as using money from new investors to pay off earlier
investors.

Mr. Bebel, the report notes, also testified that he reviewed
documents in which Mr. Stanford, in late 2008, contemplated
rolling more than 100 related businesses under his control into a
single corporate entity that would have had assets worth US$9
billion to US$11 billion and a US$2 billion profit.  "That US$2
billion in profits could've been used right there to wipe away"
the US$1.7 billion borrowed from investor assets at the Stanford
bank to fund the financier's other business ventures, loans for
which he later assumed personal responsibility," Mr. Bebel added.

Meanwhile, the report relates, Lloyd's of London lawyer Barry
Chasnoff told Judge Atlas in closing arguments that: "No matter
how distant the lawyers say Mr. Stanford was at the very least he
was aiding and abetting the commission of acts that were designed
to obtain criminal property."

                 About Stanford International Bank

Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement.  Stanford Private Wealth Management serves more
than 70,000 clients in 140 countries.

On February 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control.  The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.

The U.S. Securities and Exchange Commission, on Feb. 17, 2009,
charged before the U.S. District Court in Dallas, Texas, Mr.
Stanford and three of his companies for orchestrating a
fraudulent, multi-billion dollar investment scheme centering on an
US$8 billion Certificate of Deposit program.

A criminal case was pursued against him in June 2009, before the
U.S. District Court in Houston, Texas.  Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice.  Assistant Attorney General
Lanny Breuer, as cited by Agence France-Presse News, said in a 57-
page indictment that Mr. Stanford could face up to 250 years in
prison if convicted on all charges.  Mr. Stanford surrendered to
U.S. authorities after a warrant was issued for his arrest on the
criminal charges.

The criminal case is U.S. v. Stanford, H-09-342 (S.D. Tex.).  The
civil case is SEC v. Stanford International Bank, 09-cv-00298
(N.D. Tex.).


=============
B E R M U D A
=============


ESG RE: Court to Hear Wind-Up Petition on September 17
------------------------------------------------------
A petition to wind up the operations of ESG Re Limited will be
heard before the Supreme Court of Bermuda, on September 17, 2010,
at 9:30 a.m.


INDOLUX DERIVATIVES: Creditors' Proofs of Debt Due on September 10
------------------------------------------------------------------
The creditors of Indolux Derivatives, Ltd. are required to file
their proofs of debt by September 10, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 25, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


INDOLUX DERIVATIVES: Members' Final Meeting Set for October 4
-------------------------------------------------------------
The members of Indolux Derivatives, Ltd. will hold their final
meeting, on October 4, 2010, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company commenced wind-up proceedings on August 25, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


LSF3 INDONESIA: Creditors' Proofs of Debt Due on September 10
-------------------------------------------------------------
The creditors of LSF3 Indonesia Capital I, Ltd. are required to
file their proofs of debt by September 10, 2010, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on August 25, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


LSF3 INDONESIA: Members' Final Meeting Set for October 4
--------------------------------------------------------
The members of LSF3 Indonesia Capital I, Ltd. will hold their
final meeting, on October 4, 2010, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company commenced wind-up proceedings on August 25, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


NIPPON III: Creditors' Proofs of Debt Due on September 10
---------------------------------------------------------
The creditors of Nippon III Investments, Ltd. are required to file
their proofs of debt by September 10, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on August 25, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


NIPPON III: Members' Final Meeting Set for October 4
----------------------------------------------------
The members of Nippon III Investments, Ltd. will hold their final
meeting, on October 4, 2010, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company commenced wind-up proceedings on August 25, 2010.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House
         Church Street, Hamilton
         Bermuda


PROTOSTAR LTD: Seeks U.S. Plan Exclusivity Until November 29
------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that ProtoStar Ltd. for the fourth time is pursuing an
extension of the exclusive right to propose a Chapter 11 plan.  If
granted by the judge at a Sept. 30 hearing, the deadline would be
pushed out three months to Nov. 29.

According to the report, conclusion of the case is being held up
by a lawsuit the Official Committee of Unsecured Creditors is
prosecuting against secured lenders to invalidate their liens on
the ProtoStar I satellite.  The Committee believes the lenders
filed notices of the security interests in the wrong place.

                       About ProtoStar Ltd.

Hamilton, HM EX, Bermuda-based ProtoStar Ltd. is a satellite
operator formed in 2005 to acquire, modify, launch and operate
high-power geostationary communication satellites for direct-to-
home satellite television and broadband internet access across the
Asia-Pacific region.

The Company and its affiliates filed for Chapter 11 on July 29,
2009 (Bankr. D. Del. Lead Case No. 09-12659).  The Debtor selected
Pachulski Stang Ziehl & Jones LLP as Delaware counsel; Law Firm of
Appleby as their Bermuda counsel; UBS Securities LLC as financial
advisor & investment banker and Kurtzman Carson Consultants LLC as
claims and noticing agent.  The Debtors have tapped UBS Securities
LLC as investment banker and financial advisor.

Also on July 29, 2009, ProtoStar and its affiliates, including
ProtoStar Development Ltd., commenced a coordinated proceeding in
the Supreme Court of Bermuda.  John C. McKenna of Finance & Risk
Services Ltd. as liquidator of the Bermuda Group.

In their Chapter 11 petitions, the Debtors each estimated assets
and debts of $100 million and US$500 million.  As of December 31,
2008, ProtoStar's consolidated financial statements, which include
non-debtor affiliates, showed total assets of US$463,000,000
against debts of US$528,000,000.


===========
B R A Z I L
===========


PARANA BANCO: S&P Raises Counterparty Credit Ratings to 'BB-/B'
---------------------------------------------------------------
Standard & Poor's Ratings Services that it raised its ratings on
Parana Banco S.A., including raising the counterparty credit
ratings to 'BB-/B' from 'B+/B' on the global scale and to 'brA-'
from 'brBBB+' on the Brazilian national scale.  The outlook is
stable.

"The upgrade primarily reflects Parana Banco's solid operating
performance over the past two years, during an economic
downcycle," said Standard & Poor's credit analyst Ricardo Brito.

S&P takes into account the earnings stability afforded by the
bank's payroll-lending business and the insurance business managed
by fully owned subsidiary J. Malucelli Seguradora S.A. (national
scale: brA-/Stable/--).  Very high capital and adequate liquidity
management, which S&P trust offer significant protection during
periods of stress, also support the ratings.

The severe competition the bank faces somewhat offset these
positives.  The larger banks in Brazil are currently targeting
payroll lending, and this could lead to portfolio growth
challenges for Parana Banco.

The stable outlook reflects S&P's expectation that the bank will
be able to maintain its core competencies in the medium term with
an adequate financial profile.  However, the bank's business
profile limits ratings upside.


==========================
C A Y M A N  I S L A N D S
==========================


BALVENIE LIMITED: Members' Final Meeting Set for September 22
-------------------------------------------------------------
The members of Balvenie Limited will hold their final meeting, on
September 22, 2010, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         Jess Shakespeare
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102
         Cayman Islands


CLOVERDALE LIMITED: Shareholder to Hear Wind-Up Report on Sept. 8
-----------------------------------------------------------------
The shareholder of Cloverdale Limited will receive, on
September 8, 2010, the liquidators' report on the company's wind-
up proceedings and property disposal.

The company's liquidator is:

         Alan Johnson
         Wilmington Trust Corporate Services (Cayman) Limited
         c/o Carl Gosselin, Agent
         P.O. Box 32322, Grand Cayman, KY1-1209
         Cayman Islands
         Telephone: (345) 814-6712


COGO WOLF: Shareholders' Final Meeting Set for September 16
-----------------------------------------------------------
The shareholders of Cogo Wolf Trimaran Liquidity Fund, Ltd will
hold their final meeting, on September 16, 2010, at 4:00 p.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         DMS Corporate Services Ltd
         c/o Bernadette Bailey-Lewis
         Telephone: (345) 946-7665
         Facsimile: (345) 946-7666
         dms Corporate Services Ltd.
         dms House, 2nd Floor
         P.O. Box 1344, Grand Cayman KY1-1108
         Cayman Islands


EMERSON REINSURANCE: Shareholder Receives Wind-Up Report
--------------------------------------------------------
The shareholder of Emerson Reinsurance Ltd. received, on August 3,
2010, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         Telephone: 914-7553/ 914-7580 / 949-7755
         Facsimile: 949-6021 / 949-6021
         P.O. Box 1109, Grand Cayman
         Cayman Islands


FIRST HOSPITAL: Shareholder Receives Wind-Up Report
---------------------------------------------------
The shareholder of The First Hospital Insurance Company, Ltd.
received, on August 3, 2010, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         Telephone: 914-7553/ 914-7580 / 949-7755
         Facsimile: 949-6021 / 949-6021
         P.O. Box 1109, Grand Cayman
         Cayman Islands


FOUNDATION RE: Shareholders' Final Meeting Set for September 16
---------------------------------------------------------------
The shareholders of Foundation Re Ltd. will hold their final
meeting, on September 16, 2010, at 9:00 a.m., to receive the
liquidators' report on the company's wind-up proceedings and
property disposal.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         Telephone: 914-7553/ 914-7580 / 949-7755
         Facsimile: 949-6021 / 949-6021
         P.O. Box 1109, Grand Cayman
         Cayman Islands


JAVELIN RE: Shareholder to Hear Wind-Up Report on September 16
--------------------------------------------------------------
The shareholder of Javelin Re Ltd. will receive, on September 16,
2010, at 9:00 a.m., the liquidators' report on the company's wind-
up proceedings and property disposal.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         Telephone: 914-7553/ 914-7580 / 949-7755
         Facsimile: 949-6021 / 949-6021
         P.O. Box 1109, Grand Cayman
         Cayman Islands


MODULUS EUROPE: Shareholders' Final Meeting Set for September 7
---------------------------------------------------------------
The shareholders of Modulus Europe (Master) Limited will hold
their final meeting, on September 7, 2010, at 10:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         David A.K. Walker
         Prue Lawson
         Telephone: (345) 914-8662
         Facsimile: (345) 945-4237
         PO Box 258, Grand Cayman KY1-1104
         Cayman Islands


MODULUS EUROPE: Shareholders' Final Meeting Set for September 7
---------------------------------------------------------------
The shareholders of Modulus Europe Limited will hold their final
meeting, on September 7, 2010, at 10:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         David A.K. Walker
         Prue Lawson
         Telephone: (345) 914-8662
         Facsimile: (345) 945-4237
         PO Box 258, Grand Cayman KY1-1104
         Cayman Islands


MONT GELE: Shareholder Receives Wind-Up Report
----------------------------------------------
The shareholder of Mont Gele Re received, on August 3, 2010, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         Telephone: 914-7553/ 914-7580 / 949-7755
         Facsimile: 949-6021 / 949-6021
         P.O. Box 1109, Grand Cayman
         Cayman Islands


PERITUS OFFSHORE: Shareholders' Final Meeting Set for September 16
------------------------------------------------------------------
The shareholders of The Peritus Offshore Fund Ltd. will hold their
final meeting, on September 16, 2010, at 10:00 a.m., to receive
the liquidators' report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         David J. Desmond
         26 West Anapamu Street
         3rd Floor Santa Barbara CA 93101
         USA


RESIDENTIAL REINSURANCE: Member to Hear Wind-Up Report on Sept. 16
------------------------------------------------------------------
The shareholder of Residential Reinsurance 2006 Limited will
receive, on September 16, 2010, at 9:00 a.m., the liquidators'
report on the company's wind-up proceedings and property disposal.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         Telephone: 914-7553/ 914-7580 / 949-7755
         Facsimile: 949-6021 / 949-6021
         P.O. Box 1109, Grand Cayman
         Cayman Islands


RESIDENTIAL REINSURANCE: Member to Hear Wind-Up Report on Sept. 16
------------------------------------------------------------------
The shareholder of Residential Reinsurance 2007 Limited will
receive, on September 16, 2010, at 9:00 a.m., the liquidators'
report on the company's wind-up proceedings and property disposal.

The company's liquidators are:

         Katherine Chiazza
         Damien Austin
         Telephone: 914-7553/ 914-7580 / 949-7755
         Facsimile: 949-6021 / 949-6021
         P.O. Box 1109, Grand Cayman
         Cayman Islands


SOUTH COAST: Members' Final Meeting Set for September 27
--------------------------------------------------------
The members of South Coast Funding IX Ltd will hold their final
meeting, on September 27, 2010, at 10:05 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Jess Shakespeare
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102
         Cayman Islands


SUMITOMO FINANCE: Members' Final Meeting Set for September 27
-------------------------------------------------------------
The members of Sumitomo Finance (Asia) Limited will hold their
final meeting, on September 27, 2010, at 10:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Jess Shakespeare
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102
         Cayman Islands


ZURICH PREMIER: Members' Final Meeting Set for September 27
-----------------------------------------------------------
The members of Zurich Premier Series Ltd. will hold their final
meeting, on September 27, 2010, at 10:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Jess Shakespeare
         c/o Maples Finance Limited
         PO Box 1093, Boundary Hall
         Grand Cayman KY1-1102
         Cayman Islands


=========
C H I L E
=========


COMPANIA SUD: S&P Raises Ratings to 'B'; Gives Positive Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on Chilean
shipping company Compania Sud Americana de Vapores S.A. to 'B'
from 'B-' and revised the outlook to positive from stable.

After three capital increases for a total of US$773 million since
mid-2009, shareholders committed to a new capital increase of
US$400 million.  CSAV will likely implement this increase during
first-quarter 2011.  In addition, CSAV's operating performance
continues to improve due to increasing tariff levels,
significantly better trade flows in its core routes, and reduced
chartering costs.

The positive outlook reflects S&P's expectation that CSAV's credit
quality will continue to improve as a result of better market
conditions, with support from its more efficient cost base.  S&P
also consider the company's efforts to obtain a larger share of
owned vessels as beneficial, as a larger share would increase
stability and enhance profit margins.

"S&P could raise the ratings if CSAV can maintain minimum cash
levels of US$250 million (minimum levels under current covenant
package are US$100 million) and adjusted funds from operations to
total debt ratios higher than 20%," said Standard & Poor's credit
analyst Diego Ocampo.  "On the other hand, S&P could revise the
outlook to stable if CSAV attains adjusted debt to EBITDA ratios
higher than 5x in the upcoming quarters, and if a milder industry
outlook develops," he continued.


==================
C O S T A  R I C A
==================


INSTITUTO NACIONAL: Fitch Affirms 'BB+' Insurer Strength Rating
---------------------------------------------------------------
Fitch Ratings has affirmed the international local currency
Insurer financial Strength ratings of Instituto Nacional de
Seguros at 'BB+'.  The Rating Outlook is Stable.  Fitch has also
affirmed INS' National IFS rating at 'AAA(cri)' with a Stable
Outlook.

INS' ratings reflect the company's very strong capital and
profitability levels, dominant market position, adequate
reinsurance protection and risk exposure, high liquidity ratios,
and the explicit support the company receives from the government
of Costa Rica (local currency Issuer Default Rating 'BB+').
Despite these strengths, INS' need to enhance its operating
platform and diversify its investment portfolio are some of the
main challenges that the company should address in order to
preserve its adequate financial results and dominant position in a
market recently open to competition.

The Rating Outlook is Stable.  INS' rating is highly tied to the
rating of its shareholder, the Costa Rican government.  Changes in
the rating of the latter could result in changes to INS' ratings.

INS is the largest insurance company in Central America and one of
the largest insurance companies in Latin America.  Benefited by
its monopolistic nature until mid 2008, INS has been able to post
strong profits sustained by the sizable returns of its ample
investment portfolio and improving combined ratio; with an average
Return of Average Assets ratio above 7% in the last five years.
Despite the inception of new insurance players in Costa Rica in
the recent past, INS' market dominance and strong franchise
remains unchanged, a trend that should persist in the short and
medium term.  Despite the former, significant improvements in
terms of its underwriting skills and claim cost controls have been
achieved, providing the company with better tools to cope with
expected competition although finer tuning is required and
expected.

Capital ratios remain strong, not only thanks to its ample pre-
existing capital base and good profitability, but also given its
current 100% retained earnings policy, expected to last at least
until year 2012.  As such, the liabilities to equity ratio has
steadily decreased since 2002 (2009: 1.7 times [x]; 2002: 3.6x);
while technical reserves represent around 77% of its liabilities
and cover more than 175% of its net premiums.  INS capital is not
encumbered.

In part given the limitations of the local capital market and also
due to the state owned nature of the company, its investment
portfolio is highly concentrated on government counterparties
(central government, central bank and publicly owned banks with
sovereign guarantee); a trend that may persist in the future.
Those investments represented 1.1x company's equity as of December
2009; a level viewed as high by Fitch, given the current 'BB+'
Sovereign rating.  Despite the concentration of the investment
portfolio, liabilities are adequately match in terms of maturities
and yield, and mostly considering the short-term nature of the
both sides of the balance sheet, due the minor participation of
life insurance commitments and other long-term risks.

INS was founded in 1924.  According to the Insurance Law of 2008,
the company's insurance operations in Costa Rica are guaranteed by
the full faith of the government but not its financial debt or
insurance operations held abroad.


==================================
D O M I N I C A N  R E P U B L I C
==================================


BANCO DE RESERVAS: Fitch Affirms 'B' Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed Banco de Reservas de la Republica
Dominicana, Banco de Servicios Multiples' ratings:

  -- Foreign Currency Issuer Default Rating at 'B';
  -- Local Currency IDR at 'B';
  -- Short-Term Foreign Currency IDR at 'B';
  -- Short-Term Local Currency IDR at 'B';
  -- Individual Rating at 'D';
  -- Support Rating at '4';
  -- Support Floor at 'B';
  -- National Long-Term Rating at 'A+(dom)';
  -- National Short-Term Rating at 'F-1(dom)'.

The Rating Outlook is Stable.

Banreservas' Issuer Default Ratings reflect the support provided
by its shareholder, the Dominican government.  In addition, the
bank's Individual Rating is supported by its ample market share,
the stability of its deposit base, and adequate liquidity.
However, decreasing profitability levels, a tight capital base and
deteriorating asset quality metrics limit the bank's individual
rating.  Also, Bareservas' above average exposure of its balance
sheet to the government (proper of most state-owned banks) is also
considered.

Changes in the IDRs will be contingent upon changes in the
sovereign's creditworthiness.  Further deterioration of its asset
quality ratios and/or capital levels will trigger a downgrade of
its Individual Rating.

Increasing funding costs and a stagnated yield on its loan
portfolio resulted in a decrease of Banreservas' net interest
margin, while higher operating costs and the pressure of larger
loan loss reserves, resulted in a significant contraction of the
bank's operating profit to just 1.1%, well below its historic
average and banks of similar size in the region; while its return
on average assets ratio was benefited by an increase on non
recurring income to 1.4%; still below the market average.  Weak
asset quality on its private sector portfolio, a heavy structure
of operating costs and its narrower margin will keep pressuring
the bank's operating profits in the short term.

The stagnation of the private sector portfolio and the ramping
past due loans on such portfolio increased the past due loan ratio
for private sector loans to 11.4% as of December 2009 (FY08:
7.4%); while loan loss coverage was just 92%; metrics that compare
unfavorably with the peer average.  Public sector exposure (loans
and securities) increased to 7.7 times as of December 2009, a
level considered high due the relatively low sovereign rating of
the Dominican Republic (IDR of 'B').

Banreserva's capital ratios remain challenged.  As such, the
equity to assets ratio came down to 7.3% as of May 2010 (FY06:
9%), while the Fitch eligible capital to risk weighted assets
stood at 17.6% (10.3% if government loans are weighted at 100%), a
level considered tight given the current level of profitability
and tight loan loss coverage; while fixed assets represent 46% of
total equity.

As of May 2010, Banreservas ranked first out of 13 commercial and
multiple service banks, with 26% of total system assets.  The bank
is the main government paying agent and also has an important
participation in the consumer and corporate markets.


LISTIN DIARIO: Investors Acquire Firm
-------------------------------------
The Dominican Republic's Central Bank formalized the sale of
Listin Diario to a group of 20 wealthy investors, The Associated
Press reports.

According to the report, officials said the total cost includes
the roughly US$51.8 million the media company owes to the
government, which temporarily seized and ran the newspaper after a
severe banking crisis in 2003.

The report notes that the investors, including Juan Bautista
Vicini Lluberes of the Dominican sugar giant Vicini and media
mogul Jose Luis "Pepin" Corripio, met with President Leonel
Fernandez on Monday to vow that the debt will be paid.

The report notes that Listin Diario was owned by the prominent
Pellerano family from its founding in 1889 until 2000, when it was
bought by Ramon Baez Figueroa, head of Banco Intercontinental.
The report relates that the government took over the newspaper
temporarily after the bank collapsed in May 2003 after losing some
US$2.2 billion through embezzlement, fraud and bad deals.

Listin Diario is one of the leading newspapers in the Dominican
Republic, and the oldest still being published.


=============
J A M A I C A
=============


* JAMAICA: At Risk of US$100MM Annual Loss From Hurricanes
----------------------------------------------------------
An Inter-American Development Bank Report revealed that the
country is at risk of average annual losses of US$105 million due
to hurricanes and US$30 million from earthquakes, Caribbean Press
Releases reports.  The report relates that the study estimates the
current exposure value of physical assets to earthquakes and
hurricanes at approximately US$19 billion.

According to the report, the study said that these assets mostly
include transportation and communication infrastructure such as
roads, bridges; residential commercial and industrial buildings
and plants; and public utilities among others.  The report says
that the study further outlined that four parishes with the
highest population density are more at risk -- St. Andrew, St.
Catherine, Kingston and Clarendon respectively -- from hurricane
hazards.

                          *     *     *

According to the TCR-LA on January 18, 2010, Fitch Ratings
downgraded Jamaica's long-term local currency rating to 'C' from
'CCC'.  In addition, Fitch has affirmed Jamaica's long-term and
short-term foreign currency ratings at 'CCC' and 'C' respectively,
and affirmed the Country Ceiling at 'B-'.  Jamaica's sovereign
ratings Outlook remains Negative


===========
M E X I C O
===========


METROFINANCIERA SA: Seeks Bankruptcy Protection in U.S.
-------------------------------------------------------
Metrofinanciera SA de CV sought bankruptcy protection in the U.S.
so it can wrap up its reorganization, Dawn McCarty and David
McLaughlin at Bloomberg News report.  The report relates that in a
Chapter 15 petition filed Monday in Corpus Christi, Texas, the
company said it has negotiated a debt restructuring deal with
creditors and filed for bankruptcy in the U.S. to complete the
plan.

According to the report, without court protection in the U.S., the
company said it faces "a substantial risk" that holders of US$100
million in notes issued in 2006 could sue the company in New York.
Chapter 15 protects foreign companies from U.S. lawsuits and
creditor claims while a company reorganizes abroad.  "Such actions
will seriously disturb Metrofinanciera's near-complete
reorganization and force Metrofinanciera to litigate such actions
at great cost," the company said in court papers, the report
relates.

Bloomberg News notes that Metrofinanciera filed for bankruptcy in
Mexico last year after negotiating a restructuring with creditors.
It was the first prepackaged bankruptcy in Mexican history.

The report notes that the plan was approved by a Mexican court in
June.  Metrofinanciera listed both debt and assets of between
US$500 million and US$1 billion in its U.S. bankruptcy petition,
the report says.

Metrofinanciera, Bloomberg News notes, needs approval of the
Chapter 15 petition in order to make its bankruptcy plan effective
in the U.S. and make distributions to the noteholders under the
plan . The company's only U.S. creditors are holders of the notes,
according to court documents, the report relates.

At a hearing, U.S. Bankruptcy Judge Richard Schmidt granted the
company's request for an order blocking collection actions by
creditors.  Judge Schmidt scheduled a September 24 hearing to
consider Metrofinanciera's Chapter 15 petition, the report adds.

The U.S. case is In re Metrofinanciera SA, 10-20666, U.S.
Bankruptcy Court, Southern District of Texas (Corpus Christi).

                   About Metrofinanciera SA

Headquartered in Monterrey, Mexico, Metrofinanciera, S. A. de
C.V., Sociedad Financiera de Objeto Multiple, Entidad no Regulada
-- http://www.metrofinanciera.com.mx/-- specializes in real
estate credit and housing development in Mexico.  Founded in 1996
in Monterrey, it offers financial services and consulting for all
phases of real estate projects: housing construction, advance
sales, public works and commercialization.  The company also
offers products in life, damage and unemployment insurance.


VITRO SAB: Bond Rally Shows Creditors See Sweetened Offer
---------------------------------------------------------
Thomas Black at Bloomberg News reports that Vitro, S.A.B. de
C.V.'s defaulted bonds have climbed to a 23-month high on
speculation that the company will sweeten an offer to restructure
US$1.2 billion in debt that was rejected by creditors last month.

According to the report, Vitro SAB's 9.125% bonds maturing in 2017
have more than doubled in price to 50 cents on August 30, 2010, on
the dollar from a low of 21.25 cents on March 11, 2009.  The
report relates that they reached 51 cents on Aug. 2, the highest
since Oct. 3, 2008.

As reported in the Troubled Company Reporter-Latin America on
August 25, 2010, The Financial Online said that Vitro SAB
postponed the launch of an application consent, previously
disclosed to be launched in early August, in relation to its bonds
with a rate of 8.625% interest due 2012, 11.75% in 2013 and 9.125%
in 2017.  According to the report, the company postponed the
launch of the application for consent until September 2010 because
it is in discussions with relevant creditors in both ends with the
revision of the terms and conditions of the same application.  The
report related Vitro SAB said that it remains committed to deliver
a package, which includes cash and new tools, representing a
significant increase in the recovery of the creditors of the level
of historical price of the bonds.

Meanwhile, the report notes, Vitro's creditors said that they
hired a Mexican law firm after saying two weeks earlier they may
"be forced to exercise remedies against Vitro."

"Pushing the company into bankruptcy is still an option that is
being considered, and that's why they went out and hired these
litigators," the report quoted Alexander Monroy, a debt analyst
with Barclays Capital Inc., as saying.

                          About Vitro SAB

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.

                           *     *     *

In June 2010, Fitch Ratings withdrew all ratings of Vitro, S.A.B.
de C.V., given the lack of information following the company's
default on Feb. 2, 2009, and consistent with Fitch's policies.
Fitch will no longer provide ratings or credit research on the
Company.  Andres R. Martinez at Bloomberg News said in June that
Vitro was suspended from trading in Mexico City after failing to
file its fourth-quarter earnings report.  The company missed the
June 2 deadline for the results, Mexico's stock exchange said in
an e-mailed statement obtained by the news agency.  Vitro plans to
file the report once its debt restructuring is complete or if
ordered by a judge.  Vitro said that the suspension won't affect
company operations.

On June 30, 2009, Galaz, Yamazaki, Ruiz Urquiza, S.C., member of
Deloitte Touche Tohmatsu and C.P.C. Jorge Alberto Villarreal in
Monterrey, N.L., Mexico raised substantial doubt about the
Company's ability to continue as a going concern after auditing
financial results for the period ended Dec. 31, 2007, and 2008.
The auditors pointed out to the Company's net loss and its non-
compliance with covenants related to its long-term debt
obligations.


VITRO SAB: Concludes Sale of REIT Assets for US$63 Million
----------------------------------------------------------
Vitro S.A.B. de C.V. said that the Bancomext Trust, signed on
November 3, 2008, has concluded the sale of non-productive real
estate assets for US$63.8 million.

The proceeds of such sale, plus US$5.5 million of the Company's
available cash, were applied to liquidate the Trust.  As of August
4, 2010, the Trust had an outstanding balance of US$69.3 million,
including accrued interest.

The sale included unused ancillary property surrounding the
corporate headquarters.  As a result of such sale, the Company has
regained title of its two corporate headquarters office buildings,
and their respective land, which were part of the original assets
contributed to the Trust.

                           About Vitro SAB

Headquartered in Monterrey, Mexico, Vitro, S.A.B. de C.V. (BMV:
VITROA; NYSE: VTO), through its two subsidiaries, Vitro Envases
Norteamerica, SA de C.V. and Vimexico, S.A. de C.V., is a global
glass producer, serving the construction and automotive glass
markets and glass containers needs of the food, beverage, wine,
liquor, cosmetics and pharmaceutical industries.

                           *     *     *

In June 2010, Fitch Ratings withdrew all ratings of Vitro, S.A.B.
de C.V., given the lack of information following the company's
default on Feb. 2, 2009, and consistent with Fitch's policies.
Fitch will no longer provide ratings or credit research on the
Company.  Andres R. Martinez at Bloomberg News said in June that
Vitro was suspended from trading in Mexico City after failing to
file its fourth-quarter earnings report.  The company missed the
June 2 deadline for the results, Mexico's stock exchange said in
an e-mailed statement obtained by the news agency.  Vitro plans to
file the report once its debt restructuring is complete or if
ordered by a judge.  Vitro said that the suspension won't affect
company operations.

On June 30, 2009, Galaz, Yamazaki, Ruiz Urquiza, S.C., member of
Deloitte Touche Tohmatsu and C.P.C. Jorge Alberto Villarreal in
Monterrey, N.L., Mexico raised substantial doubt about the
Company's ability to continue as a going concern after auditing
financial results for the period ended Dec. 31, 2007, and 2008.
The auditors pointed out to the Company's net loss and its non-
compliance with covenants related to its long-term debt
obligations.


====================
P U E R T O  R I C O
====================


VASSALLO INDUSTRIES: Scales Back Under New Corporation
------------------------------------------------------
Vassallo Industries President Rafael Vassallo Collazo said that
the company will scale back operations through a newly created
corporation, Vassallo International Group, under its Chapter 11
bankruptcy reorganization plan, caribbeanbusinesspr.com reports.
The report relates Mr. Collazo said that the new corporation would
utilize roughly half of the space that the company has operated in
for the past decades in the Cotto Laurel sector of Ponce.

According to the report, Mr. Collazo said that the new corporation
would continue to export plastic products and would start
operations on November 1 after securing financing from Banco
Popular and the island government's Economic Development Bank.

The report notes that the company's old administrative offices are
being remodeled and will be leased to National College &
University.  The report relates Mr. Collazo said that scaling back
the footprint will result in lower costs for power, insurance and
maintenance among, other expenses.

Mr. Collazo said that the company would do everything possible to
keep its current staff of 145 at the Ponce plant, the report adds.

Headquartered in Puerto Rico, Vassallo Industries Inc. is a
private company that pioneers in the manufacture and distribution
of plastic pipe and its accessories for sanitary and electrical
applications.  The company has diversified into resin furniture
and accessories for household uses, honoring the excellence that
has distinguished them since the beginning.


                            ***********

Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.

Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA, Marites O. Claro, Joy A. Agravente, Rousel Elaine C.
Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A.
Chapman, Editors.


Copyright 2010.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


           * * * End of Transmission * * *